Poor families still pay bigger share of their income in taxes than wealthy families

Why?
http://nhv.us/content/15011466-poor-families-pay-bigger-share-their-income-taxes-wealthy
The analysis by the Institute on Taxation and Economic Policy that evaluates the local tax burden in every state concluded that when it comes to paying taxes, the people who earn less pay more.

In simple terms the low-and middle-income families' in each state spend more money on state and local taxes than wealthy people.

The study also concluded that even the property taxes, which account for much of local tax revenue, hit working and middle-class families harder than the wealthy.
Why people and of course our dear officials can't understand that sooner or later their "cheating" with small taxes for corporations will end?
Because debt grows every day and sooner or later government will increase corporations taxes and then corporations will "left the game" and our government will be without any investments, what will we do?

 

Take a look at a fed tax table and get back to me. You make little you pay little or none in tax.

 

Everyone in the state pays state tax. So you still pay less if you earn less. My brother pays $670 fed and $1100 in state tax based on earnings of $27,000 or about 6% of his income. You were saying?

 

You said poor pay more in taxes. You don't seem to understand that after personal exemptions and deductions from the IRS on your form, you can end up owing the feds zero leaving you with only state tax. So here in Illinois you could earn $10k, pay no fed tax and only $375 in state tax. So I have shot your theory down using IRS tax brackets.

 

And what does that higher percentage actually equal, like 10 dollars or something?

lol

 

Wrong! I brought fed and state tax into it. And what if these poor people are also getting food stamps and other free fed/state aid like Medicaid? Is that part of the calculation? Add in $6,000 a year for SNAP, and about $1,500-$2,000 a year they would have to pay for ACA HC. How about subsidized housing? What if they get $8.400 a year in TANF? So let's add it up. Income of $10k plus everything I just listed. $26k of income and services with only state tax on the $10k earned as there is no tax on the other items. So in Illinois, $370 in taxes for $26k not counting the subsidized housing. You only have to pay 30% of your monthly income for rent on sec 8. So the $850 a month the $10k earner gets pays only $255 a month for an apartment that can cost others $700. So there's another $6,000 the 'poor person' is not paying.

 

Yeah, wonder why? Because states predominantly use variations of the sales tax and property tax, and people with money are able to save it. So if I'm earning $20,000 and I spend $20,000/yr, vs. another guy who earns $5,000,000 and spend $800,000, then only 16% of his income (setting aside income taxes for argument's sake) MIGHT even be subjected to sales and property taxes. If you spend a higher percentage of your income, you pay a higher percentage of your income in sales/property/luxury/etc. taxes.

 

Poor people pay 3k a year in state and local taxes?

Do you have something to source that because I find it very hard to believe.

 

There is a simple answer to this dilemma: lower everyone's taxes to 0% that way everyone pays the same equitable, fair proportion of their income.

 

I have proven the OP is wrong. If you pay $370 in taxes and get income and other govt aid totaling $32,000, how am I wrong? That is less than 1% of what you take in.

 

The poor existing on welfare with zero earned income pay zero taxes. They pay zero for food, housing, and everything else. Taxpayers are paying for them.

 

If you want to take an honest look at tax liability as a percentage of household income among income groups, why would you NOT include federal income tax or welfare benefits received?

 

Spot on Tim. Bring down taxes on the poor to the level of the rich, then give all a healthy, substantial (potentially complete) cut.

 

I think there's a bit of a misunderstanding here. If someone makes $10K and pays in $375 to the State and no federal tax, that person is paying less than 5% of their income in taxes.

The highest tax bracket for the wealthy is 39%, which is a LOT more than 5%.

And, let's not forget the Earned Income Tax Credit whereby a person can actually get more money back than they paid in.

 

What taxes?

 

Amen. There is also the Earned Income Tax for those with small incomes.

 

It's incredible how many people believe whatever they read.

 

It makes no difference 'percentage-wise' because the taxes you are talking about cannot be progressive; they are sales taxes, excise taxes, property taxes, etc. which are levied on all people who consume those taxable items. These types of taxes are levied to fund certain aspects of state and local budgets...it's what people pay to live in these areas...

 

Wealthy elites have TRILLIONS sheltered in overseas tax free accounts. The continued welfarism that these elites get every year is treason.

 

Even assuming you could possibly be correct, where do you suppose your 'wealthy elites' get this cash to store off-shore?

My guess is that people cannot have cash to move off-shore unless they have already paid all applicable taxes on that cash. If they have paid all taxes, then what is your problem with how people spend and/or store their money?